Philippines Remittances

Philippines: Remittances hit all-time high in 2014

February 16, 2015

In December, cash remittances from Overseas Filipino Workers (OFW) increased 6.6% over the same month of the previous year, reaching USD 2.3 billion. The print came in above November’s 2.0% expansion, which had marked the lowest pace of growth since January 2009. The overall trend improved as remittances totaled a record-high USD 24.3 billion in the 12 months up to December, which followed November’s USD 24.2 billion, and marked a record high. The increase represented a 5.8% expansion over the same period of the previous year but fell short of November’s 6.1% rise.

Remittances, which accounted for approximately 8.5% of GDP in 2014, are an important source of income for many Filipino families and thus a key driver of private consumption. According to the Central Bank, land-based workers accounted for the largest share of remittances, while a smaller proportion of remittances came from sea-based workers. Remittances mainly came from the United States, Saudi Arabia and the United Arab Emirates.

FocusEconomics Consensus Forecast panelists expect private consumption to grow 5.9% in 2015, which is unchanged from last month’s projection. For 2016, the panel expects private consumption to expand 5.7%.

According to data released by Nikkei and IHS Markit, the manufacturing Purchasing Managers’ Index (PMI) edged up to 54.2 points in November from 54.0 points in October, climbing further above the critical 50-point threshold that separates expansion from contraction in the manufacturing sector.
Business conditions continued improving in November, largely thanks to a sharp acceleration in output growth, which rose at the fastest rate in nearly two years, and a strong uptick in new orders.

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